The value of outsourcing

The team at Chalmers HB can help businesses when it comes to making decisions about outsourcing core functions. Here are some of the issues to consider...

Most business owner-managers find that they spend only a small percentage of their time on important strategic planning. A great deal of their effort is spent on the day-to-day running of the business - the 'housekeeping' side of things.

But do you really need to do all this work yourself, when it is possible to get someone else to do it for you? The chances are that significant parts of the car you drive are not made by the manufacturer whose name appears on the badge, nor even assembled in their factories. Some motor manufacturers now outsource not only parts but complete assemblies - steering, transmissions, engines, interior assemblies.

So, if outsourcing can work for major international manufacturing industry, what can it do for your business? Fundamentally, it can remove from senior management the need for close involvement with the details of running a business - freeing the business owners to concentrate on those aspects of running a business which truly warrant expenditure of senior management time and effort.

Areas you might consider outsourcing include:

Payroll

Payroll is the most common task that companies outsource. Services include weekly/monthly/quarterly payroll and normally attending to the completion of the (many) Government returns.

Under RTI, employers must submit their PAYE information to HMRC on or before the day of payment.

Human resources

It is possible to outsource your human resources requirements. There are specialist companies that offer a full range of services, including insurance, training, recruitment, policies and procedural advice and help with complying with the myriad of Government employment laws and regulations.

Marketing

Independent marketing firms have all the necessary expertise and materials. You can outsource your entire marketing requirements, thus saving you the problems of creating your own internal infrastructure.

Information systems

Purchasing and maintaining information systems, hiring and evaluating IT staff and training users can all be very difficult. By outsourcing your information systems function, you can obtain the latest technology and suitably skilled personnel.

Delivery

Depending on your products and situation, there are numerous options for outsourcing delivery. Common couriers might be able to provide a major portion of your delivery function. Larger businesses might prefer to contract a major delivery firm rather than maintain their own fleet. Either way, you can hire the expertise to keep delivery problems and decisions off your desk.

The common feature of all these functions is that none of them is fundamental to your core business, and that all of them can be bought in at a competitive price. Thus leaving you to focus on the real issues: providing the best possible service to your clients, growing your business and expanding your product lines.

If you would like to discuss outsourcing with Chalmers HB, contact us today.